Chipotle Mexican Grill Inc (CMG)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash	US$ in thousands	748,537	698,547	806,528	727,394	560,609	602,307	504,866	409,727	384,000	366,623	520,933	615,863	815,374	721,109	668,269	694,776	607,987	662,401	605,622	500,315
Short-term investments	US$ in thousands	1,348,760	1,337,350	1,366,570	1,384,950	1,469,680	1,703,400	1,702,280	1,305,720	1,030,270	417,278	240,684	240,379	260,945	301,534	322,460	363,585	343,616	342,819	301,041	380,978
Receivables	US$ in thousands	211,192	175,289	169,071	89,836	168,495	71,122	60,985	65,869	154,621	183,340	181,510	139,996	193,663	394,692	360,309	312,571	387,283	129,802	165,846	120,092
Total current liabilities	US$ in thousands	1,168,770	1,037,880	1,043,160	997,353	1,030,620	1,087,710	982,250	894,092	921,880	817,857	831,623	833,738	873,682	850,964	835,486	834,004	822,199	801,717	723,178	665,795
Quick ratio		1.98	2.13	2.25	2.21	2.13	2.19	2.31	1.99	1.70	1.18	1.13	1.19	1.45	1.67	1.62	1.64	1.63	1.42	1.48	1.50

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($748,537K + $1,348,760K + $211,192K) ÷ $1,168,770K
= 1.98

The quick ratio of Chipotle Mexican Grill Inc has shown fluctuations over the periods provided in the data. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

From March 31, 2020, to December 31, 2021, the quick ratio remained relatively stable, ranging from 1.42 to 1.67. This indicated that, during these periods, Chipotle had a comfortable level of liquid assets to cover its current liabilities.

However, from March 31, 2022, the quick ratio started to decline, dropping to 1.13 by June 30, 2022. This may suggest potential liquidity challenges or a decrease in the company's ability to meet short-term obligations promptly.

The quick ratio improved significantly from March 31, 2023, reaching a peak of 2.31 by June 30, 2023. This sharp increase indicates a substantial improvement in the company's liquidity position, possibly due to increased cash reserves or more efficient management of current assets.

The ratio then stabilized around the 2.00 mark up to December 31, 2024, suggesting that Chipotle continued to maintain a strong ability to cover its short-term obligations with its liquid assets during this period.

Overall, the trend in Chipotle's quick ratio demonstrates fluctuations in the company's liquidity position, with periods of relative stability and improvements in liquidity followed by a slight decrease. It is important to monitor this ratio to assess the company's ability to address short-term financial obligations effectively.